The target-pricing approach reduces the need to go back and forth between prospective cost-plus prices,customer reactions and design modifications.

Question

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The target-pricing approach involves setting a target price based on what the customer is willing to pay, and then designing the product or service to meet that price. This approach can reduce the need for back-and-forth between cost-plus prices, customer reactions, and design modifications because the target price is already determined.

The Target-Pricing Approach Reduces the Need to Go Back and Forth